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GBP/USD Forecast 7 July 2016

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GBP/USD Forecast 7 July 2016
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Investors say about the presupposition of the financial crisis in the UK

The largest real estate fund Standard Life's has frozen funds for 2.9 billion pounds. This morning other five funds have joined and the total amount of the frozen assets amounted to 15 billion pounds.

Yesterday, the US released positive data that sent the pair GBP/USD to its new lows.

The Fed minutes showed that FOMC members are set to a longer pause before the rate increase than expected. The Fed sees no Brexit influence on the world economy now. The Fed pays more attention to the US labor market.

Today we will see data on the non-farm employment change in June - the forecast 159K in June against 173K in May. Tomorrow the main indicator of the labor market will be released. The non-farm payrolls are expected at 175K compared to 38K in May. The unemployment rate could show growth from 4.7% to 4.8%.

The UK is to publish data on industrial production, which is expected to decline by 1.0%. We expect descending of the pair GBP/USD at the 1.2810 area.

How to trade

We would buy put options if the pair GBP/USD falls below 1.2940.

Asset: GBP/USD
Direction: Put
Target price: 1.2940
Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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